Taxation and Financial Performance of an Insurance Company in Nigeria: A Study of Consolidated Hallmark Insurance Plc

Taxation and Financial Performance of an Insurance Company in Nigeria: A Study of Consolidated Hallmark Insurance Plc

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  • November 14, 2022
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ABSTRACT

This study was on the effect of taxation on the financial performance of insurance companies in Nigeria. The specific objectives were to examine the effect of income tax on the Gross premium income of Consolidated Hallmark Insurance Plc; to assess the effect of income tax on the investment income of Consolidated Hallmark Insurance Plc, and to evaluate the effect of income tax on Total comprehensive income of Consolidated Hallmark Insurance Plc. The study used Ex-post facto research design. Three hypotheses were formulated and tested using Ordinary least square regression as an analytical technique. It was found that income tax has no significant effect on the gross premium income of Consolidated Hallmark Insurance Plc, the p-value at 0.2796 being higher than the level of significance of 0.05. Next was that income tax has no significant effect on the investment income of Consolidated Hallmark Insurance Plc, the p-value at 0.0730 being higher than the level of significance of 0.05. Lastly, that income tax has no significant effect on the total comprehensive income of Consolidated Hallmark Insurance Plc, the p-value at 0.8621 being higher than the level of significance of 0.05. Based on the findings of the study it was concluded that taxation has no significant effect on the financial performance of an insurance company. In line with the findings of the study, it was recommended that insurance operators should expand their customer base in order to generate more premiums. When they do so they will feel less effect of tax on their operations. Also, investments in the insurance industry should be directed to financial instruments with proven high yields. This will allow the industry to earn more and at the same time feel less effect of taxation.

Keywords: Financial Performance; Taxation; Insurance Company; Nigeria

AUTHORSHIP: 1Okparaka, Vincent C. PhD, 2Agbaji, Bright I., 3Amobi, Mary C., 4Opara, Kelechi C., 5Oriyo, Clement O. and 6Uzor, Emmanuel E.

DOI: https://doi.org/10.5281/zenodo.7297767  | FULL PDF

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